Crypto's Biggest Heist of 2026: $292 Million Stolen from Kelp DAO, Leaving Wrapped Ether Stranded Across 20 Blockchains

A devastating exploit has struck the DeFi world, with an attacker making off with nearly 18% of the circulating supply of restaked ether, worth around $292 million. The breach occurred on Kelp DAO's LayerZero-powered bridge, which was tricked into releasing 116,500 rsETH to an attacker-controlled address. The stolen funds were part of the reserve backing wrapped versions of the token on over 20 other blockchains, leaving holders on non-Ethereum deployments uncertain about the value of their tokens. The fallout has been swift, with Aave, SparkLend, and Fluid freezing their rsETH markets, while Lido Finance has paused further deposits into its earnETH product. The incident has sparked fears of a broader contagion, with the potential for panic redemptions to pressure the unaffected Ethereum supply and force Kelp to unwind restaking positions to honor withdrawals. As the investigation into the exploit continues, the future of rsETH and the DeFi ecosystem hangs in the balance.